BP Awards Clair Field Contracts

This Contract, the first major element of construction activity to be awarded as the Clair project develops, is valued at around £13.5 million. Terry Hughes, BP' s Performance Unit Leader for Clair, said that the tendering process for the contract had been a very competitive one.

The Clair Project partners have consistently stated that all of the components of the project would be competitively bid. The contract for the accommodation modules attracted first class bids across a broad range of criteria, from technical to commercial aspects. Each of the tenders was submitted to a rigorous evaluation process which examined the competence of each company in various areas. Leirvik Module Technology was competitive in terms of both cost and technical content. "Leirvik has vast experience with projects of this size and type and has demonstrated that it has exceptional technical competence. We are delighted to be working with a company of such ability." The accommodation contract involves the fabrication of the living quarters and utility building, which will form part of the topsides for Clair. Work on finalizing design will commence immediately and fabrication work will follow.

Aker Elektro has been awarded a letter of intent worth NOK 30 million for the engineering, materials delivery and installation of electrical, instrumentation and telecommunications facilities for the living quarters, helideck and utility module. Aker Elektro will subcontract to Leirvik Module Technology. The equipment module is due to be delivered in February 2003, and the living quarters and helideck in April 2004. Engineering will start immediately. EI&T installation work will begin in summer 2002. Aker Elektro will have around 20 people on the project on average, increasing in the months running up to delivery in April 2004.

The Clair field is located on the UK Continental Shelf in approximately 460 feet of water and approximately 46 miles west of Shetland. Development of the Clair Project is expected to cost around £ 650 million. Phase 1 of the Clair development has recoverable reserves of 250 million barrels of oil. Plateau production from phase 1 of the development is expected to be 60,000 barrels of oil a day and 15 million cubic feet of gas a day.